HC Deb 15 April 1991 vol 189 cc14-9W
Mr. Nicholas Brown

To ask the Chancellor of the Exchequer if he will update the answer given to the hon. Member for Great Grimsby (Mr. Mitchell) of 17 January,Official Report, columns 559–62, taking account of the changes announced in the 1991 Budget and giving estimates up to 1991–92.

Mr. Maude

Updated figures for 1990–91 and estimates for 1991–92 are given in the table.

0.5 0.75 1 1.5 2 3 4 5 7 10 20
Other indirect — 20.32 24.00 32.04 — — — — — — —
Total 12.91 73.90 111.64 178.84 175.67 309.31 442.95 576.59 843.87 1,244.79 2,581.19
Amounts, 1990–91 prices
Income Tax 1.45 21.44 41.42 81.39 138.01 265.90 393.80 521.69 777.48 1,161.16 2,440.09
NICS 10.90 18.10 25.29 30.11 30.11 30.11 30.11 30.11 30.11 30.11 30.11
VAT — 11.74 17.16 28.99 — — — — — — —
Other indirect — 19.45 22.97 30.66 — — — — — — —
Total 12.35 70.72 106.84 171.15 168.12 296.01 423.90 551.80 807.58 1,191.26 2,470.20
Percentage of Earnings
Income Tax 0.9 8.9 13.0 17.0 21.6 27.7 30.8 32.6 34.7 36.3 38.2
NICS 68 7.5 7.9 6.3 4.7 3.1 2.4 1.9 1.3 0.9 0.5
VAT — 4.9 5.4 6.0 — — — — — — —
Other indirect — 8.1 7.2 6.4 — — — — — — —
Total 77.7 29.5 33.4 35.7 26.3 30.9 33.1 34.5 36.1 37.3 38.6
Income Tax, NICS and indirect tax payments at multiples of average earnings, 1991–92
0.5 0.75 1 1.5 2 3 4 5 7 10 20
Single
Amounts, £ per week
Income Tax 25.92 46.80 67.68 109.45 173.57 307.21 440.85 574.49 841.77 1,242.69 2,579.09
NICS 11.39 18.91 26.43 31.46 31.46 31.46 31.46 31.46 31.46 31.46 31.46
VAT — 13.56 18.16 28.18 — — — — — — —
Other indirect — 18.79 23.39 33.43 — — — — — — —
Total 37.31 98.06 135.66 202.52 205.03 338.67 472.31 605.95 873.23 1,274.15 2,610.55
Amounts, 1990–91 prices
Income Tax 24.81 44.79 64.77 104.74 166.11 294.00 421.89 549.79 805.57 1,189.25 2,468.19
NICS 10.90 18.10 25.29 30.11 30.11 30.11 30.11 30.11 30.11 30.11 30.11
VAT — 12.98 17.38 26.97 — — — — — — —
Other indirect — 17.98 22.38 31.99 — — — — — — —
Total 35.71 93.84 129.83 193.81 196.21 324.11 452.00 579.89 835.68 1,219.36 2,498.30
Percentage of Earnings
Income Tax 15.5 18.7 20.3 21.8 26.0 30.7 33.0 34.4 36.0 37.2 38.6
NICS 6.8 7.5 7.9 6.3 4.7 3.1 2.4 1.9 1.3 0.9 0.5
VAT — 5.4 5.4 5.6 — — — — — — —
Other indirect — 7.5 7.0 6.7 — — — — — — —
Total 22.3 39.1 40.6 40.4 30.7 33.8 35.3 36.3 37.3 38.1 39.1
Married, no children
Amounts, £ per week
Income Tax 17.65 38.53 59.41 101.18 160.34 293.98 427.62 561.26 828.54 1,229.46 2,565.86
NICS 11.39 18.91 26.43 31.46 31.46 31.46 31.46 31.46 31.46 31.46 31.46
VAT — 12.47 17.47 28.38 — — — — — — —
Other indirect — 20.78 25.41 35.50 — — — — — — —
Total 29.04 90.69 128.72 196.52 191.80 325.44 459.08 592.72 860.00 1,260.92 2,597.32
Amounts, 1990–91 prices
Income Tax 16.89 36.87 56.86 96.83 153.45 281.34 409.23 537.13 792.91 1,176.59 2,455.53
NICS 10.90 18.10 25.29 30.11 30.11 30.11 30.11 30.11 30.11 30.11 30.11
VAT — 11.93 16.72 27.16 — — — — — — —
Other indirect — 19.89 24.32 33.97 — — — — — — —
Total 27.79 86.79 123.19 188.07 183.55 311.45 439.34 567.23 823.02 1,206.70 2,485.64
Percentage of Earnings
Income Tax 10.6 15.4 17.8 20.2 24.0 29.3 32.0 33.6 35.4 36.8 38.4
NICS 6.8 7.5 7.9 6.3 4.7 3.1 2.4 1.9 1.3 0.9 0.5
VAT — 5.0 5.2 5.7 — — — — — — —
Other indirect — 8.3 7.6 7.1 — — — — — — —
Total 17.4 36.2 38.5 39.2 28.7 32.5 34.4 35.5 36.8 37.7 38.9
Income tax, NICS and indirect tax payments at multiples of average earnings, 1990–91
Multiples of average earnings
0.5 0.75 1 1.5 2 3 4 5 7 10 20
Single
Amounts, £ per week
Income tax 24.04 43.28 62.53 101.91 163.49 286.65 409.81 532.97 779.29 1,148.77 2,380.37
NICS 10.64 17.56 24.49 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28
VAT — 11.23 15.05 23.38 — — — — — — —
Other indirect — 17.08 21.27 30.42 — — — — — — —
Total 34.68 89.15 123.34 183.99 191.77 314.93 438.09 561.25 807.57 1,177.05 2,408.65
Percentage of earnings
Income tax 15.6 18.7 20.3 22.1 26.5 31.0 33.3 34.6 36.2 37.3 38.7
NICS 6.9 7.6 8.0 6.1 4.6 3.1 2.3 1.8 1.3 0.9 0.5
VAT — 4.9 4.9 5.1 — — — — — — —
Other indirect — 7.4 6.9 6.6 — — — — — — —
Total 22.5 38.6 40.1 39.8 31.1 34.1 35.6 36.5 37.5 38.2 39.1
Married, no children
Amounts, £ per week
Income tax 15.77 35.01 54.26 92.75 150.26 273.42 396.58 519.74 766.06 1,135.54 2,367.14
NICS 10.64 17.56 24.49 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28
VAT — 10.32 14.48 23.62 — — — — — — —
Other indirect — 18.98 23.19 32.45 — — — — — — —
Total 26.41 81.87 116.42 177.10 178.54 301.70 424.86 548.02 794.34 1,163.82 2,395.42
Percentage of earnings
Income tax 10.2 15.2 17.6 20.1 24.4 29.6 32.2 33.8 35.5 36.9 38.4
NICS 6.9 7.6 8.0 6.1 4.6 3.1 2.3 1.8 1.3 0.9 0.5
VAT — 4.5 4.7 5.1 — — — — — — —
Other indirect — 8.2 7.5 7.0 — — — — — — —
Total 17.2 35.5 37.8 38.3 29.0 32.7 34.5 35.6 36.9 37.8 38.9
Married, both working
Amounts, £ per week
Income tax 1.32 20.57 39.81 78.30 116.79 203.55 313.75 436.91 683.23 1,052.71 2,284.31
NICS 7.42 14.34 21.27 35.13 47.23 56.56 56.56 56.56 56.56 56.56 56.56
VAT — 11.74 16.25 25.27 — — — — — — —
Other indirect — 21.90 25.65 33.15 — — — — — — —
Total 8.74 68.55 102.98 171.85 164.02 260.11 370.31 493.47 739.79 1,109.27 2,340.87
Percentage of earnings
Income tax 0.9 8.9 12.9 17.0 19.0 22.0 25.5 28.4 31.7 34.2 37.1
NICS 4.8 6.2 6.9 7.6 7.7 6.1 4.6 3.7 2.6 1.8 0.9
VAT — 5.1 5.3 5.5 — — — — — — —
Other indirect — 9.5 8.3 7.2 — — — — — — —
Total 5.7 29.7 33.4 37.2 26.6 28.2 30.1 32.1 34.3 36.0 38.0
Married, 2 children
Amounts, £ per week
Income tax 1.27 20.51 39.76 78.25 135.76 258.92 382.08 505.24 751.56 1,121.04 2,352.64
NICS 10.64 17.56 24.49 28.28 28.28 28.28 28.28 28.28 28.28 28.28 28.28
VAT — 10.06 14.77 25.12 — — — — — — —
Other indirect — 18.45 21.79 29.14 — — — — — — —
Total 11.91 66.58 100.81 160.79 164.04 287.20 410.36 533.52 779.84 1,149.32 2,380.92
Percentage of earnings
Income tax 0.8 8.9 12.9 16.9 22.0 28.0 31.0 32.8 34.9 36.4 38.2
NICS 6.9 7.6 8.0 6.1 4.6 3.1 2.3 1.8 1.3 0.9 0.5
VAT — 4.4 4.8 5.4 — — — — — — —
Other indirect — 8.0 7.1 6.3 — — — — — — —
Total 7.7 28.8 32.7 34.8 26.6 31.1 33.3 34.7 36.2 37.3 38.7
Notes to Tables
(1) Income tax payments are calculated on the assumption that the households receive no tax reliefs other than the standard allowances and only have income from employment. All earners, including wives, are assumed to pay Class 1 national insurance contributions at the contracted-in rate.
(2) Since 1990–91, husbands and wives have been taxed independently. Previously the tax liability of couples depended on their joint income. To permit comparisons with earlier years, the table therefore shows income tax and national insurance contributions paid by a married couple as a proportion of their joint income, assuming, as in the earlier years, that where both partners are earners, the husband and wife share the relevant multiple of earnings in the ratio 60:40.

(3) In order to provide comparability with 1978–79, when support for children was given partly through child tax allowances, child benefit is treated as a negative income tax for the married couple with two children. (For 1991–92, the child benefit figure is a financial year average.)

(4) Average earnings are taken to be the average gross weekly earnings of all full-time males on adult rates with pay unaffected by absence. These are estimated to be £307.90 per week in 1990–91 and £334.10 per week in 1991–92, using the Government Actuary Department's assumptions of 10 per cent. growth over 1989–90 and 8.5 per cent. growth over 1990–91, as published in the 1990 autumn statement.

(5) The estimates of indirect taxes are based on equations derived from the 1985 family expenditure survey, uprated to later years using forecasts of aggregate tax receipts. They are based on the illustrative assumption that 10 per cent. of disposable income is saved. There are wide variations in spending patterns between households with the same composition and similar incomes and estimated payments of VAT and other indirect taxes are therefore approximate, even within the income range for which figures are shown. Outside this range, the margin of error is even higher and reliable estimates cannot be made. Because of sampling variation, there can be substantial differences between estimates obtained from family expenditure surveys for different years.